Why NASDAQ:TTD Is a Promising High-Growth Stock in the Midst of Consolidation.

Last update: Jan 22, 2025

In this article we will dive into TRADE DESK INC/THE -CLASS A (NASDAQ:TTD) as a possible candidate for growth investing. Investors should always do their own research, but we noticed TRADE DESK INC/THE -CLASS A showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Exploring NASDAQ:TTD's Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:TTD has earned a 9 for growth:

The Earnings Per Share has grown by an impressive 20.49% over the past year.
The Earnings Per Share has been growing by 36.07% on average over the past years. This is a very strong growth
The Revenue has grown by 26.13% in the past year. This is a very strong growth!
Measured over the past years, TTD shows a very strong growth in Revenue. The Revenue has been growing by 32.46% on average per year.
Based on estimates for the next years, TTD will show a very strong growth in Earnings Per Share. The EPS will grow by 28.88% on average per year.
Based on estimates for the next years, TTD will show a very strong growth in Revenue. The Revenue will grow by 22.26% on average per year.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:TTD was assigned a score of 8 for health:

An Altman-Z score of 13.99 indicates that TTD is not in any danger for bankruptcy at the moment.
The Altman-Z score of TTD (13.99) is better than 98.85% of its industry peers.
There is no outstanding debt for TTD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TTD does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Examination for NASDAQ:TTD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:TTD has achieved a 8:

TTD has a better Return On Assets (5.60%) than 88.51% of its industry peers.
TTD has a Return On Equity of 11.74%. This is amongst the best in the industry. TTD outperforms 81.61% of its industry peers.
TTD's Return On Invested Capital of 10.29% is amongst the best of the industry. TTD outperforms 90.80% of its industry peers.
The 3 year average ROIC (5.35%) for TTD is below the current ROIC(10.29%), indicating increased profibility in the last year.
The Profit Margin of TTD (13.34%) is better than 88.51% of its industry peers.
With an excellent Operating Margin value of 16.29%, TTD belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
TTD has a Gross Margin of 81.06%. This is amongst the best in the industry. TTD outperforms 91.95% of its industry peers.

How does the Setup look for NASDAQ:TTD

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:TTD has a 7 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, TTD also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of TTD contains the most current fundamental analsysis.

For an up to date full technical analysis you can check the technical report of TTD

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.